Craig House

Thank you, so this means that the interest is potentially subject to both income tax (estate income after death) and inheritance tax (counted in the total estate value subject to an IHT assesment) ?

Thank you. And should therefore also not be included in the deceased estate value report for IHT purpose ?

Hi, Deceased parent held 3 fixed rate savings bonds of 1, 2 and 3 yrs in duration. Yr 1 matured in 23/24, yr 2 matures in 24/25, yr 3 matures in 25/26. Interest on all 3 bonds is reported both annually and on maturity, but is not accessible until maturity. Account holder died 05/04/24. My assumption is that the interest paid on the 1 yr bond counts as income of the deceased as it was accessible, but as the interest reported on the 2 & 3 yr bonds for tax year 23/24 was not accessible to the deceased, it will become estate income and taxed accordingly when the accounts are closed by the executor. Is this correct please ? Thank you.